10 Cities In The World That Make The Young Generation More Difficult To Have Their Own Homes

A city in the world with the most expensive house prices. (Freepic/frimufilms)

Having a dream house in the middle of a big city is now a dream for the younger generation that is increasingly difficult to reach. The soaring property prices around the world make many people, especially the middle class, have to face the harsh reality, namely the price of homes far beyond their capabilities.

Based on a recent report from theChapman University Center for Democracy and Policy released in May 2025, 10 major cities in the world recorded a very high annual income rate for the population. In their terms, these cities fall into the category of 'impossibly unaffordable' or "very unaffordable."

According to this study, the housing market is considered "unaffordable" if the standard house price reaches nine times or more of the residents' annual income. The following is a list of 10 cities with the most expensive house prices in the world based on this ratio, as reported by the CNBC Make It page!

1. Hong Kong 14.4

2. Sydney, Australia 13.8

3. San Jose, California 12.1

4. Vancouver, Canada 11.8

5. Los Angeles, California 11.2

6. Adelaide, Australia 10.9

7. Honolulu, Hawaii 10.8

8. San Francisco, California 10

9. Melbourne, Australia 9.7

10. San Diego, California 9.5

Over the years, Hong Kong maintained its position as the most expensive property market in the world. With a ratio of 14.4, this means that the average house price in Hong Kong reaches more than 14 times the average annual income of workers in the city. Likewise with other ratios calculated with unit number points.

"In Hong Kong, owning a home is no longer just a challenge, but it has become a luxury," wrote the Chapman report.

Five out of ten cities on this list are in the United States, all in coastal states such as California and Hawaii. This reflects the ongoing housing crisis, especially in areas where demand is high but the supply is very limited.

Joel Kotkin, director of the Center for Democracy and Policy, explained that the policy of restricting development in suburban areas is one of the main causes of the high price of houses.

"These high prices are mostly the result of policies that limit growth in suburban areas, which have been the way cities develop naturally," said Kotkin.

Meanwhile, major cities in Australia such as Sydney, Melbourne, and Adelaide are also on the list because the price of houses is soaring, not proportional to the income of its citizens.

The government in many cities is trying to overcome this crisis by encouraging the construction of high-density housing such as small apartments or micro-homes. However, this solution is not necessarily effective for middle income groups.

"New units built are generally small and expensive, and rarely meet the needs of middle-class families," Cox said, author of the report.

This affordability crisis has a major impact on people's lives. Many young families have to postpone their first house purchases, extend the lease period, or even move to other cities.

"The downturn in affordable housing is the main cause of the living expenses crisis that suppresses the middle class and workers." said David Leis of the Front Center for Public Policy.